The game on the screen is Super Mario. The goal of Super Mario is to get Mario to the castle to save the princess from King Koopa. Here we see the bound princess, playing Mario, in order to get him to save her… to get out of her bondage!

Um, Dan, unless I miss my guess, that’s Daisy, not Peach, so it’d make more sense if she was playing the Game Boy game Super Mario Land. Unless, that is, the artist is referencing how NES games, such as SMB, couldn’t do yellow well, so blonde characters were brunette in NES games.